International Baccalaureate (IB) Practice Exam

Are teens considered a primary target for credit card companies?

1. Yes, they are heavily targeted

2. No, they are not targeted

3. Only those with part-time jobs are targeted

4. Only college students are targeted

The correct answer is: Yes, they are heavily targeted

Teens are indeed considered a primary target for credit card companies due to several factors that make them an attractive demographic. Firstly, young consumers represent a significant potential market for establishing brand loyalty early on. By marketing credit cards to teens, companies attempt to cultivate lifelong customers who will continue using their services as they grow older and their financial needs evolve. Moreover, teens are often influenced by peer behavior and social media trends, making them susceptible to marketing tactics that promote credit card usage as a symbol of independence and financial freedom. Credit card companies may also advertise low-interest rates and enticing rewards tailored to young people's interests, such as travel discounts or shopping deals, making credit cards appealing even to those with limited income. The other options suggest varying degrees of targeting but do not encompass the broader scope of how credit card companies focus on teens as a valuable group to reach, regardless of employment status or college enrollment. While part-time workers may be targeted for their income potential and college students for student-focused offers, the overarching strategy is to appeal to the teen demographic at large.